Bill Text: HI HB1812 | 2012 | Regular Session | Introduced
Bill Title: Employees' Retirement System; New Employee's Average Final Compensation
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2012-01-19 - (H) Referred to LAB, FIN, referral sheet 2 [HB1812 Detail]
Download: Hawaii-2012-HB1812-Introduced.html
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HOUSE OF REPRESENTATIVES |
H.B. NO. |
1812 |
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TWENTY-SIXTH LEGISLATURE, 2012 |
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STATE OF HAWAII |
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A BILL FOR AN ACT
RELATING TO THE EMPLOYEES' RETIREMENT SYSTEM.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:
SECTION 1. The legislature finds that it is necessary to reduce the unfunded actuarial accrued liability of the employees' retirement system.
The purpose of this Act is to provide that, for a public employee hired after June 30, 2012, the "average final compensation" shall be the average annual compensation during all years of credited service.
SECTION 2. Section 88-81, Hawaii Revised Statutes, is amended as follows:
1. By amending subsection (b) to read:
"(b) The average final compensation of members shall be calculated as follows:
(1) For employees who become members before January 1, 1971:
(A) During the member's five highest paid years of credited service, including vacation pay, or the three highest paid years of credited service excluding vacation pay, whichever is greater; or
(B) If the member has fewer than three years of credited service, during the member's actual years of credited service;
(2) For employees who become members after December 31, 1970, but before July 1, 2012:
(A) During the member's three highest paid years of credited service, excluding vacation pay; or
(B) If the member has fewer than three years of credited service, during the member's actual years of credited service; and
(3) For employees who become members after June 30,
2012[:
(A) During the member's five highest
paid years of credited service, excluding vacation pay; or
(B) If the member has fewer than
five years of credited service, during the member's actual years of credited
service.], the average annual compensation during all years of credited
service, that shall be calculated as follows:
(A) Totaling all compensation received by the employee during all years of credited service; and
(B) Dividing that total by the number of years of credited service of the employee."
2. By amending subsection (f) to read:
"(f) If a member, who becomes a member
after June 30, 2012, has credited service rendered as an elective officer [or
as a], legislative officer, or judge, the member's average
final compensation shall be computed separately for each category of service as
follows:
(1) For the five highest paid years of credited service as an elective officer, or if the member has fewer than five years of credited service in that capacity, then the member's actual years of credited service;
(2) For the five highest paid years of credited service as a legislative officer, or if the member has fewer than five years of credited service in that capacity, then the member's actual years of credited service;
(3) For the five highest paid years of credited service as a judge, or if the member has fewer than three years of credited service in that capacity, then the member's actual years of credited service; and
(4) For [the five highest paid] years of
credited service not included in paragraph (1), (2), or (3), [or if the
member has fewer than five years of credited service in that capacity, then]
the member's actual years of credited service. The member's average final
compensation under this paragraph shall be computed in accordance with subsection
(b)(3)."
SECTION 3. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.
SECTION 4. This Act shall take effect upon its approval.
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INTRODUCED BY: |
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Report Title:
Employees' Retirement System; New Employee's Average Final Compensation
Description:
Provides that, for a public employee hired after 06/30/2012, the "average final compensation" shall be the average annual compensation received during all years of credited service.
The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.
